Aditya Birla Group's Indriya Experiencing Stronger Growth in Smaller Towns Amid Increased Formalisation

Indriya Jewellery Venture Sees Growth in Tier-2 and Tier-3 Cities

Company Overview

Indriya, a jewellery venture from the Aditya Birla Group, has achieved a milestone of 50 stores within 18 months of its launch in July 2024. The company has leveraged a design-first approach to capture a diverse market that it describes as "many Indias".

Market Growth

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The growth rate in smaller towns is now higher than metros, as the gap in organized retail was much larger in those areas. Indriya has expanded to over 30 cities, including Haldwani in Uttarakhand and Gaya in Bihar. The company aims to reach 75 stores "very quickly" and double its current count to 100 stores.

Industry Trends

The Indian jewellery sector is undergoing a transformation, with formalisation gaining momentum and organised players now controlling 36-38 percent of the market, a significant rise from 22 percent in FY19. The formalization of the industry started seriously about 25–30 years ago, with initial growth rates higher in metro cities.

Investment and Expansion

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Indriya was launched with an initial investment of Rs 5000 crore. The brand aims to be a top-three retailer in India within five years, focusing on Gen Z consumers who view jewellery as a "beauty product". The company is eyeing its next major milestones, including reaching 75 stores and doubling its current count to 100 stores.

Consumer Demand

Despite surging gold prices, consumer demand remains remarkably resilient. Management noted that jewellery is a category like salt, with 100% penetration. While customers might not increase their budgets at the same rate as gold price hikes, they are becoming more selective, browsing more designs, and placing a higher premium on trust and quality.